British pub group Marston's reduces debt, outperforms broader market (updated)
09/10/2024 08:00
(Adds details throughout)
Oct 9 (Reuters) - British pub group Marston's MARS.L
forecast a significant reduction in its net debt on Wednesday,
and said its annual like-for-like sales growth outperformed the
broader market, driven by resilient demand for its drinks and
pub grub.
WHY IT'S IMPORTANT
While the pub group has seen good sales momentum due to higher
customer spending and the Euro 2024 championship, it is still
struggling with an over 1-billion-pound debt, which is more than
four times its market value.
Marston's holds a market value of 271.3 million pounds
($354.97 million), as of Oct. 9, according to data compiled by
LSEG.
CONTEXT
The Wolverhampton-based group has been offloading pubs as it
aims to reduce its debt. It disposed of its 40% stake in joint
venture Carlsberg Marston's Limited to Carlsberg CARLb.CO for
206 million pounds in July.
In May, Marston's said it expects to sell 50 million pounds
of unlicensed properties this financial year.
BY THE NUMBERS
The predominately suburban Marston's posted a 4.8% growth in LFL
sales for the 52-week period ended Sept. 28. The company
outperformed the managed pub sector's 4% rise, as per Peel Hunt.
WHAT'S NEXT?
Marston's expects to report profitability in line with market
view during its 2024 prelim results on Dec. 3.
The British pub group expects its net debt, excluding IFRS 16
lease liabilities for fiscal 2024, to stand at nearly 885
million pounds, down from the 1.16 billion pounds reported at
the end of the first half of the year.
($1 = 0.7643 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry
Jacob-Phillips)
((Yamini.Kalia@thomsonreuters.com;))